The legal wranglings between Apple and Qualcomm have been going on all year as noted in our list of actions noted at the bottom of our report. Today, Qualcomm begins a new chapter in their legal fight with Apple by suing four of Apple's key iPhone suppliers. Our report covers Qualcomm's press release and a Scribd document of the actual court filing against Apple's iPhone suppliers.
Qualcomm Inc filed a new complaint today. In their press release they noted the following:
"Qualcomm Incorporated today filed a complaint in the United States District Court for the Southern District of California against FIH Mobile Ltd. and Hon Hai Precision Industry Co., Ltd., (together known as Foxconn), Pegatron Corporation, Wistron Corporation, and Compal Electronics, Inc., the four manufacturers of all Apple iPhones and iPads sold worldwide, for breaching their license agreements and other commitments with Qualcomm and refusing to pay for use of Qualcomm's licensed technologies. Qualcomm seeks an order that would require the defendants to comply with their long-standing contractual obligations to Qualcomm, as well as declaratory relief and damages.
Despite a long history of consistently paying royalties under their license agreements with Qualcomm, the manufacturers now are refusing to pay royalties on the Apple products they produce. While not disputing their contractual obligations to pay for the use of Qualcomm's inventions, the manufacturers say they must follow Apple's instructions not to pay.
The license agreements with the manufacturers in many cases were entered into before Apple sold its first iPhone and Apple is not a party to the agreements. Further, the defendants are continuing to pay Qualcomm royalties for use of Qualcomm's technology in non-Apple products, under the very same agreements that apply to the Apple products.
Qualcomm has already filed a separate claim against Apple for its unlawful interference with the license agreements between Qualcomm and these manufacturers.
Don Rosenberg, executive vice president and general counsel of Qualcomm stated that "It is unfortunate that we must take this action against these long-time licensees to enforce our agreements, but we cannot allow these manufacturers and Apple to use our valuable intellectual property without paying the fair and reasonable royalties to which they have agreed."
Rosenberg added that "As Apple continues to collect billions of dollars from consumer sales of its Qualcomm-enabled products, it is using its market power as the wealthiest company in the world to try to coerce unfair and unreasonable license terms from Qualcomm in its global attack on the company. Our license agreements with Apple's manufacturers remain valid and enforceable. The manufacturers must continue to live up to their obligations under these agreements and Apple should immediately cease its tortious interference."
Apple has agreed to indemnify the manufacturers for any damages resulting from breaching their agreements with Qualcomm, the chipmaker said in the complaint filed in the United States District Court for the Southern District of California.
Legal Wranglings: Apple-Qualcomm
May 12, 2017: The FTC Responds to Qualcomm's Motion to dismiss their case about Monopoly Power, Samsung & Intel File Amicus Briefs
May 03, 2017: Qualcomm Plans Retaliation against Apple and ask the International Trade Commission to Stop iPhone Sales
Apr 28, 2017: Qualcomm Lowers Q3 Fiscal 2017 Guidance due to Apple Holding back Royalty Payments
Apr 21, 2017: Qualcomm's Sales Decline for Baseband Modems for the iPhone 8 will hurt their Bottom Line
Apr 11, 2017: Qualcomm Fires Back at Apple with Counterclaims Lawsuit Claiming Breach of Contract and more
Mar 02, 2017: Apple has launched a new Lawsuit against Qualcomm in the U.K.
Jan. 25, 2017: Apple takes their War against Qualcomm to Beijing China
Jan. 22, 2017: Apple's Full lawsuit against Qualcomm Comes to Light Revealing Secret Licensing Agreements and more
Jan 20, 2017: Apple Sues Qualcomm for $1 Billion Claiming Unfair Exclusionary Tactics and Charging Excessive Royalties